Zcash Equihash Algorithm: Mining and Hardware in Plain Terms A new Zcash block doesn’t appear on its own. Someone has to crack the Zcash Equihash algorithm first, and whoever gets there wins
A new Zcash block doesn’t appear on its own. Someone has to crack the Zcash Equihash algorithm first, and whoever gets there wins the right to add the block and collect the reward.
The job is to pick 512 numbers from a huge list so that their combined value cancels out to zero. It sounds odd but is quick to check.
Zcash is a privacy-focused cryptocurrency. Equihash is the proof-of-work method that secures it. Its designers wanted a puzzle that favored memory over custom chips, and that bet held for a while before ASIC makers found a way in.
Zcash is a cryptocurrency built for private payments. Per the project, it grew out of the original Bitcoin code base and added zero-knowledge encryption on top of it. ZEC is the coin, while Zcash is the network behind it. Zcash lets senders choose.
A payment can go out in the open through a transparent address or stay hidden through shielded transactions that keep the sender, receiver, and amount off the public ledger.
Mining is how those payments get recorded. Miners race each other for every block, and the thing they race to crack is the Zcash Equihash algorithm.
Equihash is a memory-oriented proof-of-work algorithm built on the generalized problem. Put simply, a miner must find items that match each other in a very specific way.
Researchers designed it to keep mining open to ordinary computers with plenty of memory. The Zcash Equihash algorithm runs on two settings, n and k, fixed at 200 and 9. They decide the size of the puzzle.
The table below sums up the Zcash Equihash algorithm in numbers.
Parameter
Value
What it means
n
200
Length of each string in bits
k
9
Sets the rounds; a solution holds 2⁹ = 512 indexes.
Starting list
2,097,152 strings
About one million hashes, each split into two halves
Bits matched per round
20
Strings must agree on the next 20 bits.
Solution size
1,344 bytes
512 indexes at 21 bits each
The starting list alone takes at least 50 megabytes, so a fast solver spends much of its time moving data in and out of memory.
The miner takes the 140-byte block header and adds a nonce, a number that can be changed freely. BLAKE2b, a hash function, then runs about one million times, once per index, giving a 50-byte result each time.
Every result is cut in half, which leaves 2,097,152 strings of 25 bytes each.
Ten rounds of matching come next. In each round, the miner pairs up strings that share the next 20 bits, then applies XOR. That is a bit-by-bit comparison that returns zero when two bits are the same.
Pairs grow into groups of four, then eight, then sixteen. By the end, 512 original indexes remain, and their combined XOR is zero.
A valid set of 512 indexes is packed into 1,344 bytes and attached to the block. Then the block is hashed with double SHA-256 and compared with the difficulty target.
One nonce yields about two solutions on average. That is why miners count speed in solutions per second, written Sol/s, instead of plain hashes.
Checking is far cheaper than finding. Nodes only confirm that the 512 indexes follow the rules, which is a sliver of the miner's effort. The whole Zcash Equihash algorithm rests on that idea: hard to solve, quick to verify.
Memory-hard puzzles were meant to make custom chips expensive, because memory takes far more silicon than hashing logic. The Zcash Equihash algorithm leaned on that idea from the start.
The plan held for a while. According to the official Zcash mining documentation, Equihash coins were mined only by GPUs until the Antminer Z9 mini arrived. Network difficulty then climbed roughly tenfold.
The mining documentation now says an ASIC is required at current difficulty. That leaves GPU and CPU rigs out of the race.
Dividing one figure by the other gives roughly 34,000 machines of that class. At full load they would draw around 96 megawatts, though the real fleet mixes older and newer models.
Running the Zcash Equihash algorithm at scale comes down to four steps, and each has its own trade-offs.
Step
What happens
Main concern
Hardware
An Equihash ASIC is bought from a maker or reseller
Fast-moving market and price swings
Hosting
The machine runs at home or in a hosting facility.
Noise, heat, wiring load, and hosting fees
Pool
Miners combine power and share rewards.
Pool fee and payout method
Payout
ZEC goes to a wallet address set in the pool.
Address type and privacy
Solo mining the Zcash Equihash algorithm pays only when one machine finds a full block. The official documentation strongly favors pools, which turn that gamble into steadier income.
Power decides most of the outcome. The documentation calls cheap electricity crucial and compares ASIC noise to a vacuum cleaner.
Payouts can go to a shielded address when the pool supports it. Newer unified addresses can receive funds into theZcash Orchard protocol, which dropped the trusted setup older shielded pools needed.
A new block arrives about every 75 seconds. Each one releases a block reward of 1.5625 ZEC, according to the project's economics page. Miners do not keep the whole amount, because part of each reward funds development.
The reward halves roughly every four years until 21 million ZEC exist. The latest cut came in 2024. Every Zcash Equihash algorithm miner felt it, because the same work now earns half as many coins.
UnderZcash monetary policy, each halving slows new issuance. Income per machine therefore shrinks unless the ZEC price rises or running costs fall.
Hardware risk: Miners running the Zcash Equihash algorithm can get caught out when a newer, more efficient ASIC lands, because a machine bought at today’s price may be worth far less within months.
Difficulty growth: Every extra machine that joins the network cuts into each miner’s slice of the rewards, so earnings can fall even on days when the ZEC price holds steady.
Power costs: One Z15 Pro class unit draws 2,780 watts, so electricity rates, cooling, and hosting fees can quickly turn a thin margin negative.
Concentration: Large fleets and big pools can hold a heavy share of the network's Sol/s, which cuts against the open participation goal behind the original design.
Halving effect:The next cut in the project's halving schedule lowers the block reward again, so profit leans on price and efficiency.
The Zcash Equihash algorithm turns block creation into a memory-heavy search for 512 matching indexes. It is slow to solve and quick to verify. The design aimed to keep mining open to GPUs, yet ASICs now dominate.
What stays uncertain is how hardware, difficulty, and halvings will interact. Any mining decision should start with the numbers that move most, which are network difficulty, pool terms, and the local power rate.
Disclaimer:
This content is for information only and is not financial, investment, or legal advice. Crypto mining and digital assets carry high risk, including loss of capital and hardware value. Independent research is essential before acting.
